1 / 33

Foreign Exchange Trading (FOREX): Analysis & Management Economic Indicators

Foreign Exchange Trading (FOREX): Analysis & Management Economic Indicators. Prepared and presented by Dr. Ahmad Khasawneh. FOREX Fundamental Analysis The Economics Indicators. Analyzing the data:

jania
Download Presentation

Foreign Exchange Trading (FOREX): Analysis & Management Economic Indicators

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Foreign Exchange Trading (FOREX):Analysis & ManagementEconomic Indicators Prepared and presented by Dr. Ahmad Khasawneh

  2. FOREX Fundamental Analysis The Economics Indicators • Analyzing the data: • Evaluating data changes (over time, compared to the market participant forecast, relative to the business cycle, compared to previous periods average, normal range). • Assessing whether the data change is significant or not.

  3. FOREX Fundamental Analysis The Economics Indicators • U.S. Economics Statistics: • Unemployment: is the percentage of the unemployed people to the total labor force in the economy.

  4. FOREX Fundamental Analysis The Economics Indicators - Employment Decrease U.S. Dollar - Unemployment increase will depreciate - Employment Increase U.S. Dollar - Unemployment Decrease will appreciate

  5. FOREX Fundamental Analysis The Economics Indicators • Employment tends to grow the fastest during the recovery phase of the cycle – 260k per month. • Employment tends to grow 100k faster during the rapid growth phase than the slower phase. • The significant unemployment rate change is about 0.2pp.

  6. FOREX Fundamental Analysis The Economics Indicators • Gross Domestic Product (GDP):

  7. FOREX Fundamental Analysis The Economics Indicators - GDP Decrease U.S. Dollar will depreciate - GDP Increase U.S. Dollar will appreciate • 0.1pp on a quarter to quarter basis is the minimum significant Variation.

  8. FOREX Fundamental Analysis The Economics Indicators • Consumer Price Index (CPI):

  9. FOREX Fundamental Analysis The Economics Indicators - CPI Decrease U.S. Dollar will depreciate - CPI Increase U.S. Dollar will appreciate • The normal range of the CPI change lies between 0.1% - 0.5%.

  10. FOREX Fundamental Analysis The Economics Indicators • Producer Price Index (PPI):

  11. FOREX Fundamental Analysis The Economics Indicators - PPI Decrease U.S. Dollar will depreciate - PPI Increase U.S. Dollar will appreciate • The normal range of the CPI change lies between 0.0% - 0.5%.

  12. FOREX Fundamental Analysis The Economics Indicators • Employment Cost Index (ECI):

  13. FOREX Fundamental Analysis The Economics Indicators - ECI Decrease U.S. Dollar will appreciate - ECI Increase U.S. Dollar will depreciate • The average quarterly increase in the ECI was 1.2% and 1.4% in the recession and recovery, and 1.1% in the expansion.

  14. FOREX Fundamental Analysis The Economics Indicators • Average Hourly Earnings:

  15. FOREX Fundamental Analysis The Economics Indicators - Hourly Earning Decrease U.S. Dollar will depreciate - Hourly Earning Increase U.S. Dollar will appreciate

  16. FOREX Fundamental Analysis The Economics Indicators • National Association Purchasing Manager (NAPM):

  17. FOREX Fundamental Analysis The Economics Indicators - NAPM Decrease U.S. Dollar will depreciate - NAPM Increase U.S. Dollar will appreciate • The diffusion index can range between 0 and 100 percent. With 50% implying no net change; above 50% suggesting improvement; and below 50% represent a contraction.

  18. FOREX Fundamental Analysis The Economics Indicators • Retail Sales:

  19. FOREX Fundamental Analysis The Economics Indicators - Retail Sales Decrease U.S. Dollar will depreciate - Retail Sales Increase U.S. Dollar will appreciate • The normal range of retail sales 0.0% - 1.2%. • The normal range of retail sales ex-auto 0.1% - 1.0%.

  20. FOREX Fundamental Analysis The Economics Indicators • Home Sales:

  21. FOREX Fundamental Analysis The Economics Indicators - Home Sales Decrease U.S. Dollar will depreciate - Home Sales Increase U.S. Dollar will appreciate

  22. FOREX Fundamental Analysis The Economics Indicators • Car and Truck Sales:

  23. FOREX Fundamental Analysis The Economics Indicators - Car & Truck Sales Decrease U.S. Dollar will depreciate - Car & Truck Sales Increase U.S. Dollar will appreciate

  24. FOREX Fundamental Analysis The Economics Indicators • Consumer Confidence Measures:

  25. FOREX Fundamental Analysis The Economics Indicators - Consumer Confidence Decrease U.S. Dollar will depreciate - Consumer Confidence Increase U.S. Dollar will appreciate

  26. FOREX Fundamental Analysis The Economics Indicators • Personal Income and Consumption:

  27. FOREX Fundamental Analysis The Economics Indicators - Income & Consumption Decrease U.S. Dollar will depreciate - Income & Consumption Increase U.S. Dollar will appreciate

  28. FOREX Fundamental Analysis The Economics Indicators • Durable Goods Orders and Shipments:

  29. FOREX Fundamental Analysis The Economics Indicators - Orders & Shipments Decrease U.S. Dollar will depreciate - Orders & Shipments Increase U.S. Dollar will appreciate

  30. FOREX Fundamental Analysis The Economics Indicators • International Trade of Goods and Services:

  31. FOREX Fundamental Analysis The Economics Indicators - Trade Balance Deficit Increase U.S. Dollar will depreciate - Trade Balance Surplus Increase U.S. Dollar will appreciate

  32. FOREX Fundamental Analysis The Economics Indicators • Unemployment Insurance Claim:

  33. FOREX Fundamental Analysis The Economics Indicators - Jobless Claims Decrease U.S. Dollar will appreciate - Jobless Claims Increase U.S. Dollar will depreciate

More Related